Globitex introduces a digital currency exchange allowing everyone to trade commodities and money market instruments for Bitcoin. The existing institutional grade Bitcoin exchange, with unrivalled API capabilities will scale into a global spot and derivatives trading venue. It will allow producers to purchase exchange listed products for Bitcoin, and trading firms and speculators to hedge their risks in Bitcoin with derivatives trading. This will therefore increase the use cases for Bitcoin as a medium of exchange and ultimately establish Bitcoin as a unit of account suitable for global trade, with no geographic, political or monetary restrictions.

Bitcoin Spot Exchange

Globitex is an institutional grade Bitcoin exchange, with unrivalled API capabilities for direct market access. The project has received venture capital funding with the aim of building a Bitcoin exchange that reflected the team’s vision of how an exchange should work in terms of connectivity, matching, settlement and reporting. Today you can trade Bitcoin and Bitcoin Cash against Euros on the Globitex exchange.

GBX token sale is organised in order to scale the existing Globitex exchange infrastructure to the necessary industrial trading level, with a capacity to accommodate standardised money markets and commodities listings. The token sale is interned for the business development goals divided into three parts, enabling the team to use the proceeds in order to achieve the goals set forth.

I

Spot FX and REPO

Stage I

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II

Money Markets and Derivatives

Stage II

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III

Deliverable Commodity Derivatives

Stage III

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I

Spot FX and REPO

Stage I

Scale spot FX, where Bitcoin can be traded vs. major fiat and other cryptocurrencies

This will involve business development efforts for establishing additional banking relationships with bank partners around the globe and across the currency spectrum. This will also involve the undertaking of a thorough security and business evaluation, including development of extensions for the payment system based on the highest security standards before adding other cryptocurrencies as trading instruments on Globitex.

Implement FX margin trading ability - REPO

By allowing Globitex clients to lend to each other with REPO, or standardised maturities repurchase agreement based instruments, Globitex clients will be able to use the borrowed funds for leveraging their trading; the loans will be made available as collateralised debt instruments, which can also be used for purposes outside of the exchange. This, in turn, will create a money market for Bitcoin and other cryptocurrencies, and thereby establish market based interest rates. Globitex will expand its core system level functionality to implement FX margin trading based on the peer-to-peer lending principle. Furthermore, to allow currency REPO instruments, a new risk module will also need to be implemented.

List precious metals spot contracts

Globitex will introduce commodities trading in bitcoin, starting with deliverable spot gold. Gold is an obvious choice to begin with, as Bitcoin itself is dubbed “digital gold”. Globitex will develop order book and distribution channels for gold bought on Globitex against bitcoin.

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II

Money Markets and Derivatives

Stage II

Develop Bitcoin money markets - BIBOR

Aggregate the leading interest rate markets for Bitcoin margin lending, including the one developed by Globitex at stage I, in order to form a tradable interest rate product. Name it “BIBOR” (Bitcoin Inter-Broker Offered Rate) and offer BIBOR futures trading, thereby setting the standard reference rate for the Bitcoin economy capital markets. Furthermore, expanding to money markets in other cryptocurrencies based on market appetite.

List cash settled commodity futures and options

At this stage, business development and various partnerships will have positioned Globitex to reference the existing USD based markets. By using traditional futures markets pricing in commodities, we shall begin using Bitcoin at the scale needed for global trade by synthetically forming derivative instruments in commodities, paired with FX market developed in Stage I. These instruments will be listed in standardised maturities and settled in Bitcoin. We will begin by implementing precious metals cash settled futures trading and follow up with other commodities. By further developing IT infrastructure and risk management, the Globitex exchange will be able to accommodate options listings in commodities, FX and money markets thereby linking Bitcoin to global trade at all levels of derivatives.

List cryptocurrency futures, swaps and options

Create cryptocurrency-to-fiat and cryptocurrency-to-cryptocurrency based futures, swaps and options to be used as financial instruments for hedging, investing and speculating purposes.

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III

Deliverable Commodity Derivatives

Stage III

List Bitcoin priced Globitex commodity index - GCOM

Aggregate various groups of commodities, listed in the previous stage, as cash settled futures, such as energy, grains, industrial metals, precious metals, softs, livestock, into a Bitcoin priced index. Such index would reflect Globitex and other exchange listed commodities value in Bitcoin. The index would have a specific weight for each commodity group. The index would first serve the purpose of a reference price, and may later form the bases for a tradable index futures product. Name the index Globitex Commodity index “GCOM” and prepare to offer GCOM futures trading.

Enable precious metals futures contracts to be physically deliverable

The previously established Bitcoin settled derivatives need to be made deliverable physically in kind. Futures will become available for physical delivery. Starting with a precious metals spot market and integrating in existing precious metals distribution channels, we shall allow a standard commodity kind to be delivered and deliverable in exchange as a collateral in some pre-agreed form. Globitex will work on specific form for certificates of ownership - warehouse receipts in the form of tokens, which may be tracked and verified on a public blockchain.

For commodities such as non-perishable energy products or industrial metals, which can be stored in warehouses for long time periods, we shall rely on the existing warehouse infrastructure, be it the established warehouses used by existing exchanges or other private warehouses complying with the common delivery standards, to allow other liquid derivative instruments to be physically deliverable. Similarly for consumables, we shall partner with existing wholesalers offering FOB (free on board) or CIF (cost insurance freight) commodities for purchase with Bitcoin and delivery in kind at designated ports and warehouses.

The GBX token sale does not constitute an offer of securities or a promotion, invitation or solicitation for investment purposes. The terms of the contribution are therefore not intended to be a financial services offering document or a prospectus. The token offering involves and relates to the development and use of experimental software and technologies that may not come to fruition or achieve the objectives specified in the white paper. The purchase of tokens represents a high risk to any contributor. Tokens do not represent equity, shares, units, royalties or rights to capital, profit or income in the network or software or in the entity that issues tokens or any other company or intellectual property associated with the network or any other public or private enterprise, corporation, foundation or other entity in any jurisdiction. Please read our Privacy policy.